The demand for lithium and battery metals is increasing worldwide, primarily driven by the global shift towards green energy.
Australia, possessing significant reserves of lithium, has directed its focus towards mining this mineral to enhance its economic growth and reduce dependence on fossil fuels.
In the upcoming years, Australia is predicted to double its lithium production by 2027-28, which could lead to tripling of revenues, according a report published by the Office of the Chief Economist.
As a result, it has the potential to surpass the Lithium Triangle development in South America and emerge as the world's largest lithium producer.
Australia's lithium trends.
Lithium outlook
Spot prices for lithium commodities have eased since the start of the year, after reaching record highs late last year.
However, the value of lithium is predicted to rise again in the future, as demand is expected to increase tenfold between now and 2030 due to the surge in sales of electric vehicles, batteries for electronic devices, and renewable energy projects.
Australia, with its abundant natural resources, is poised to play a crucial role in meeting this demand, with 22% of the world's nickel reserves and 21% of its cobalt.
The country's mining industry can continue to thrive and contribute to the global energy industry even as it moves away from coal.
By 2026, Australia aims to produce 116,240 tonnes of lithium per year, potentially making it the world's largest producer, says the Chief Economist.
However, it faces fierce competition from the Lithium Triangle development in South America, which includes Chile, Bolivia, and Argentina, and currently accounts for 56% of the world's lithium supply.
Lithium spot prices.
Lithium stocks during the March quarter
Here are few of the ASX lithium stocks that produced strong news flow during the most recent quarter:
Anson Resources
Anson Resources Ltd (ASX:ASN) has ended the March quarter in a strong financial position, with $42.6 million in hand, advancing its focus on lithium and other minerals with its core asset being the Paradox Lithium Project in Utah.
During the quarter, the company signed a water rights agreement with Green River Companies LLC to provide water for the Paradox project's proposed lithium-producing operation.
Anson also received approval from the Utah Division of Oil, Gas, and Mining to conduct a re-entry and sampling program at the Sunburst No.1 and Mineral Canyon Fed 1-3 wells in the western region of the Paradox project.
Under its "Western Strategy," Anson plans to convert the existing inferred resource and exploration target to indicated and inferred resources.
Anson also staked the new Green River Lithium Project, which comprises a total of 1,251 placer claims for an area of 10,620 hectares at Green River, Utah.
Colorado River in close proximity to Anson’s proposed production facility
The company plans to deploy the same strategy used at Paradox to define new lithium-brine JORC resources at Green River by re-entering existing oil wells.
Anson's Yellow Cat Uranium Vanadium Project was also included in the Global X Uranium ETF, the largest Exchange Trade Fund (ETF) in the uranium and nuclear industry with net assets of around US$1.716 billion as of 25 January 2023.
During the quarter, Anson appointed a COO, a CFO, and a project director to strengthen its executive team as it continues the development of its Paradox project and advances its portfolio of projects.
Core Lithium
Core Lithium Ltd (ASX:CXO) delivered a busy March quarter advancing its Finniss Lithium Operations to production and shipment.
The highlight of the quarter is that construction of the dense media separation plant at Finniss has been completed and the first concentrate production was achieved in February 2023.
The company also shipped its maiden 3,500-tonne spodumene concentrate parcel from Finniss to the Darwin port in March and early April.
Commenting on the quarter, Core CEO Gareth Manderson said: “The Finniss operations team has responded very well to the challenges of the 2022-23 wet season.
“The pit was dewatered ahead of expectations and the team returned to mining of ore from the pit before the end of the quarter.
“Core is rapidly moving to lithium concentrate producer status. Concentrator construction was completed, and ore feed commissioning commenced on February 7.
“First concentrate was produced in February and the first shipment was transported to the Darwin port in late March - all early in H1 2023.
“Commercial agreements for first concentrate production with long-term customer Sichuan Yahua assist our cash flow management. The Core team is now focused on ramping up and establishing integrated mining and processing operations.”
The report also notes that Core's cash balance stood at $97.8 million at the end of the quarter, excluding cash receipts from Yahua sales contract prepayments.
Global lithium
The highlight of Global Lithium Resources Ltd (ASX:GL1)’s March quarter was the assays from the Manna drilling program which outlined a large, high-grade lithium-bearing pegmatite extension of the existing resource.
During that period, the company appointed Wave International as the lead engineer for the Manna DFS and metallurgical test work program.
The Manna Project progresses to a definitive feasibility study (DFS) following the completion of the scoping study.
Environmental baseline studies are underway with the company well-positioned to submit works approvals early in next year.
Global Lithium managing director Ron Mitchell said: “We are pleased with our achievements during the March quarter, particularly the completion of the initial scoping study and commencement of the DFS and metallurgical test program which we are confident will reinforce the potential of the Manna Lithium Project.
“Several technical de-risking workstreams are underway which will further improve the robustness of the flow sheet as we progress the Manna DFS.
“In addition, the discovery of what appears to be a large high-grade spodumene-bearing pegmatite extension to the Northeast of the Manna Project appears highly prospective and will be a focus of this year’s extensional drilling program which we hope will grow the overall scale and grade of the Manna resource.
“To prepare for our upcoming activities, Global Lithium continues to build out its management team that will deliver the upcoming studies and projects we have planned.
“In April, we have welcomed Matthew Allen as chief financial officer of the company following his recent appointment.
“In addition, there have been a number of internal technical team appointments within the project development team.
“This is just the latest experienced addition to our team which will support the ongoing growth of Global Lithium as we continue development of our Western Australian lithium projects.”
Green Technology Metals
Green Technology Metals Ltd (ASX:GT1) has made significant progress during the March quarter, advancing its Root and Junior Lake projects in Canada.
During the quarter, the Root Project saw significant drilling and exploration work across three primary locations: McCombe, Morrison, and Root Bay.
At the McCombe Deposit, a maiden mineral resource estimate was released, which showed 4.5 million tonnes at 1.01% Li20 and 110 ppm Ta2O5 (inferred) over the first 1.5 kilometres strike.
GT1 executed a binding option agreement with Landore Resources Canada Inc. to secure the Junior Lake Project, which is located adjacent to the Falcon Lake project and presents an opportunity to secure additional feedstock for a lithium concentrate plant at Seymour.
At the office, the company appointed Nicholas Rathjen as head of corporate development and established an office in Toronto to support the Seymour project studies.
GT1 CEO Luke Cox said: “We hit the ground running for the first quarter of the year adding a sizeable tenement package alongside Seymour to our portfolio, to enhance resource growth opportunities for the eastern hub.
“We continued to expand our team with key hires including Nick Rathjen now leading Corporate Development for the company and opened our office in Toronto to support project studies for our Flagship Seymour Project.
“On the exploration side we have continued to have success at the Root Project with our maiden resource now released for McCombe.
“Drilling has expanded across the Root Project to two new target areas; Morrison and Root Bay.
“We look forward to next quarter as we commence our second field exploration season and continue to uncover new target areas to increase our resource base.”
Ioneer
Ioneer Ltd (ASX:INR, OTC:GSCCF) has delivered a busy March quarter advancing its Rhyolite Ridge Lithium-Boron Project in Esmeralda County, Nevada.
During the period, the mineral resource for the project increased by 168% to 3.5 million tonnes of lithium carbonate equivalent (LCE).
On the funding side, the US Department of Energy has offered a conditional commitment for a loan of up to US$700 million for the Rhyolite Ridge Project.
In the field, the company is advancing detailed engineering and procurement activities at the project.
What’s more, the NEPA permitting process advances with the formal closure of the public scoping period.
Jindalee Resources
The highlight of Jindalee Resources Ltd (ASX:JRL)’s March quarter is the resource upgrade to 3 billion tonnes at 1,340 parts per million (ppm) lithium, making it the largest lithium deposit in North America by contained lithium.
In mid‐February, the company signed a non‐binding Memorandum of Understanding (MoU) with major Korean conglomerate POSCO Holdings Inc, whereby both parties agreed to undertake joint research on a large composite sample from McDermitt.
Also during the quarter, a spin out of Jindalee’s Australian assets via Dynamic Metals Ltd (ASX:DYM) was completed, making Jindalee a pure play US lithium company.
Latin Resources
Latin Resources Ltd (ASX:LRS) generated “impressive” news flow during the March quarter, advancing activities at the Salinas Lithium Project in Brazil.
During the period, the company kicked off a 65,000-metre mineral resource infill and expansion program focused on fast-tracking the growth of the Colina Deposit mineral resource.
Notably, the Salinas Lithium Project tenure expanded by approximately 367% over the company’s previous holdings, to a total of over 38,000 hectares now under Latin’s control.
What’s more, Latin has signed a non-binding Memorandum of Understanding (MoU) with the State Economic Department of Minas Gerais to collaborate on building the battery materials sector and supply chain investment in the region.
Latin Resources executive director Christopher Gale said: “This has been an impressive quarter for Latin Resources, as we have once again exceeded our expectations for the Salinas Lithium Project in Brazil.
“Our 65,000-metre 2023 drilling program commenced on site, with assay results confirming the growth potential of the Colina Deposit.
Our previously announced mineral resource estimate is set to be re-evaluated in June as we have gained confidence in the growth opportunity based on the results received.
“We are also thrilled to have announced the new tenement package for the project, which increases our holdings in the area by 367%, with a new total of 38,000 hectares.
“Our relationship with the State of Minas Gerais was further strengthened through the signing of a non-binding Memorandum of Understanding between Latin Resources and Invest Minas.
"This agreement will facilitate the fast-tracking of Latin’s approvals and licensing, while we support the development of the lithium sector and employment opportunities in Minas Gerais.
“We look forward to bringing further developments from our activities to our shareholders, as we continue to push through our milestones.”